....lybob Posted October 21, 2011 Share Posted October 21, 2011 Link to comment Share on other sites More sharing options...
/dev/null Posted October 21, 2011 Share Posted October 21, 2011 Dangerous Derivative Deal Now that's some awesomely amazing alliteration. Link to comment Share on other sites More sharing options...
ieatcrayonz Posted October 21, 2011 Share Posted October 21, 2011 Dangerous Derivative Deal Now that's some awesomely amazing alliteration. The OP should have named the thread Tough Turk talks turkey toward treasury thugs. Link to comment Share on other sites More sharing options...
erynthered Posted October 21, 2011 Share Posted October 21, 2011 The OP should have named the thread Tough Turk talks turkey toward treasury thugs. Touche Link to comment Share on other sites More sharing options...
Gary M Posted October 21, 2011 Share Posted October 21, 2011 youtube.com/watch?v=N_XtXhiekQk&feature=feedu He might be the only one there that understands that. Link to comment Share on other sites More sharing options...
ieatcrayonz Posted October 21, 2011 Share Posted October 21, 2011 (edited) Touche If he was talking about the people in the park, rather than the reporter it could have been: Drunken derelict douchebag deadbeats debate derivatives deal despite dubious discernment. Edited October 21, 2011 by ieatcrayonz Link to comment Share on other sites More sharing options...
erynthered Posted October 21, 2011 Share Posted October 21, 2011 If he was talking about the people in the park, rather than the reporter it could have been: Drunken derelict douchebag deadbeats debate derivatives despite dubious discernment. Definitely dramatic drama.......... Link to comment Share on other sites More sharing options...
....lybob Posted October 21, 2011 Author Share Posted October 21, 2011 Bank of America Corp. (BAC), hit by a credit downgrade last month, has moved derivatives from its Merrill Lynch unit to a subsidiary flush with insured deposits, according to people with direct knowledge of the situation.The Federal Reserve and Federal Deposit Insurance Corp. disagree over the transfers, which are being requested by counterparties, said the people, who asked to remain anonymous because they weren’t authorized to speak publicly. The Fed has signaled that it favors moving the derivatives to give relief to the bank holding company, while the FDIC, which would have to pay off depositors in the event of a bank failure, is objecting, said the people. The bank doesn’t believe regulatory approval is needed, said people with knowledge of its position. Bank of America’s holding company — the parent of both the retail bank and the Merrill Lynch securities unit — held almost $75 trillion of derivatives at the end of June, according to data compiled by the OCC. About $53 trillion, or 71 percent, were within Bank of America NA, according to the data, which represent the notional values of the trades.That compares with JPMorgan’s deposit-taking entity, JPMorgan Chase Bank NA, which contained 99 percent of the New York-based firm’s $79 trillion of notional derivatives, the OCC data show. Moving derivatives contracts between units of a bank holding company is limited under Section 23A of the Federal Reserve Act, which is designed to prevent a lender’s affiliates from benefiting from its federal subsidy and to protect the bank from excessive risk originating at the non-bank affiliate, said Saule T. Omarova, a law professor at the University of North Carolina at Chapel Hill School of Law. The Fed’s approval to move derivatives from Bank of America’s holding company to the depository unit directly puts the U.S. taxpayers on the hook. The FDIC cannot handle any large banking failure with its depleted Deposit Insurance Fund and would have to immediately tap its line of credit with the U.S. Treasury.The Dodd-Frank attempt to end “To Big To Fail” by giving the FDIC resolution authority has been a failure. In another crisis, the FDIC does not have the resources to absorb potentially huge losses from Bank of America’s derivative bets. Furthermore, without massive government guarantees, there would be no buyer for a failed Bank of America given the open ended risks involved. To prevent complete panic by the public from a looming failure of Bank of America, the Fed, FDIC and US Treasury would again have to provide virtually unlimited financial support, courtesy of the U.S. taxpayer. Link to comment Share on other sites More sharing options...
ieatcrayonz Posted October 21, 2011 Share Posted October 21, 2011 Definitely dramatic drama.......... Words of wisdom for those in the park: Sparing soap Saturday sires smells Sunday suddenly sending swarming simpleton sappy scumbags scurrying seeking scent safety. Link to comment Share on other sites More sharing options...
erynthered Posted October 21, 2011 Share Posted October 21, 2011 Words of wisdom for those in the park: Sparing soap Saturday sires smells Sunday suddenly sending swarming simpleton sappy scumbags scurrying seeking scent safety. :lol: You win!!!!!!!!!! Link to comment Share on other sites More sharing options...
IDBillzFan Posted October 21, 2011 Share Posted October 21, 2011 I love how so many people today stand in front of a camera with a microphone and start a story with "here's a reason why these people are protesting," and yet when you turn the camera on the actual people who are protesting and ask them why they're there, they say things like "May I mommy dog face to the banana patch" and "Jews suck." Fortunately for the OWS folks, wnen you have no message, there are plenty of people in the media to fill that vacuum with their own thoughts. Link to comment Share on other sites More sharing options...
Jauronimo Posted October 21, 2011 Share Posted October 21, 2011 (edited) I love how so many people today stand in front of a camera with a microphone and start a story with "here's a reason why these people are protesting," and yet when you turn the camera on the actual people who are protesting and ask them why they're there, they say things like "May I mommy dog face to the banana patch" and "Jews suck." Fortunately for the OWS folks, wnen you have no message, there are plenty of people in the media to fill that vacuum with their own thoughts. The May I Mommy Dog Face was one of the few OWS talking points I actually agreed with... until they went to far and added the Banana Patch. Essentially, OWS got greedy. Its a shame too, because their totally unrealistic views about the Banana Patch just serve to undermine the whole point of the movement, which is the Purple Monkey Dishwasher. Edited October 21, 2011 by Jauronimo Link to comment Share on other sites More sharing options...
....lybob Posted October 21, 2011 Author Share Posted October 21, 2011 Merrill Lynch engaged in derivatives contracts with foreign parties. These foreign parties are worried that Merrill can't fund its side of the bet, so they are asking Merrill to post additional collateral on their side of the bet. However, Bank of America NA has lots of capital because it has lots of assets, including demand deposit accounts backed by the FDIC. So the counterparties to Merrill's derivatives contracts asked Bank of America the holding company to move the contracts from its Merrill Lynch arm to its Bank of America NA arm. This is good for Bank of America the holding company, because it's cheaper to not have to post the additional collateral at Merrill Lynch. However, it means that Bank of America NA is on the hook if they end up on the losing end of the derivatives bets (which is likely, that's why the counterparties would be worried about Merrill Lynch being able to pay up in the first place.)Now, typically if a bank went bankrupt, all of the creditors would line up and a judge would split up whatever assets were left based on credit seniority, etc. However, in 2005 the bankruptcy code was changed so that derivatives contracts could be executed ahead of all other creditors in a bankruptcy. So currently, if Merrill Lynch goes belly up and the outstanding derivatives contracts are more than the equity available at Merrill, the coutnerparties get all of Merrill Lynch, other Merrill Lynch creditors get nothing, and then the counterparties have some options trying to get the rest of what they're owed from Bank of America the holding company (which would now be just the retail banking arm.) However, if the contracts are transferred to BofA NA, the retail bank arm, and the contracts wipe out a large portion or all of BofA NA's equity to the extent that in bankruptcy they can't pay out what they owe depositors, the FDIC has to step in to make up the difference because the counterparties to the derivatives contracts have first dibs on all assets. This means that Bank of America could feasibly risk all of it's demand deposit accounts on a risky derivatives position knowing that if they failed, the FDIC would bail the depositors out (they have to by law up to $250,000). Essentially, the FDIC is put in a position where it is insuring derivatives counterparty risk. And if that risk is larger than what's available in the DIF (which is likely because it was never meant to cover that kind of exposure) it will be taxpayer funds that refund depositors. So your tax dollars are essentially insuring Merrill Lynch's risky bet with some foreign financial entity. Link to comment Share on other sites More sharing options...
Wacka Posted October 21, 2011 Share Posted October 21, 2011 A pair of pistol packing punks pilfer from a pizzeria in Pendleton! Link to comment Share on other sites More sharing options...
....lybob Posted October 21, 2011 Author Share Posted October 21, 2011 Dangerous Derivative Deal Now that's some awesomely amazing alliteration. The OP should have named the thread Tough Turk talks turkey toward treasury thugs. If he was talking about the people in the park, rather than the reporter it could have been: Drunken derelict douchebag deadbeats debate derivatives deal despite dubious discernment. Definitely dramatic drama.......... Words of wisdom for those in the park: Sparing soap Saturday sires smells Sunday suddenly sending swarming simpleton sappy scumbags scurrying seeking scent safety. I love how so many people today stand in front of a camera with a microphone and start a story with "here's a reason why these people are protesting," and yet when you turn the camera on the actual people who are protesting and ask them why they're there, they say things like "May I mommy dog face to the banana patch" and "Jews suck." Fortunately for the OWS folks, wnen you have no message, there are plenty of people in the media to fill that vacuum with their own thoughts. The May I Mommy Dog Face was one of the few OWS talking points I actually agreed with... until they went to far and added the Banana Patch. Essentially, OWS got greedy. Its a shame too, because their totally unrealistic views about the Banana Patch just serve to undermine the whole point of the movement, which is the Purple Monkey Dishwasher. A pair of pistol packing punks pilfer from a pizzeria in Pendleton! more incoherent and ignorant quotes than anything from the OWS protests Link to comment Share on other sites More sharing options...
3rdnlng Posted October 21, 2011 Share Posted October 21, 2011 more incoherent and ignorant quotes than anything from the OWS protests HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA I was confusing you with someone else. Link to comment Share on other sites More sharing options...
erynthered Posted October 21, 2011 Share Posted October 21, 2011 more incoherent and ignorant quotes than anything from the OWS protests In honor of all lybob's you tube video's I bring you........ lybob relaxing at home. Link to comment Share on other sites More sharing options...
IDBillzFan Posted October 21, 2011 Share Posted October 21, 2011 more incoherent and ignorant quotes than anything from the OWS protests Let's see who can come up with some OWS videos so ...lybob can see the error of his ways. I'll start. We'll assume ...lybob believes this woman's request that we kick all the Jews out of the US is coherent and smart! http://www.mrctv.org/videos/anti-semitic-occupy-la-protester-fired-school-district-media-mostly-mum Link to comment Share on other sites More sharing options...
....lybob Posted October 21, 2011 Author Share Posted October 21, 2011 Let's see who can come up with some OWS videos so ...lybob can see the error of his ways. I'll start. We'll assume ...lybob believes this woman's request that we kick all the Jews out of the US is coherent and smart! http://www.mrctv.org/videos/anti-semitic-occupy-la-protester-fired-school-district-media-mostly-mum Apparently you didn't watch the video or are too stupid to understand the words disavow. 1. The women in question said she was not part of the OWS movement but just runs to any demonstration where she can spread her message. 2. the women from occupy LA disavowed her btw I'd like to know exactly how you "edit" someone on the street because there our a few people I'd like to edit- oh and the women in question was immediately fired from her public job, I'd like that standard applied to anyone who advocates any American citizen to be forced to leave America. Link to comment Share on other sites More sharing options...
GG Posted October 21, 2011 Share Posted October 21, 2011 Let's see who can come up with some OWS videos so ...lybob can see the error of his ways. I'll start. We'll assume ...lybob believes this woman's request that we kick all the Jews out of the US is coherent and smart! http://www.mrctv.org/videos/anti-semitic-occupy-la-protester-fired-school-district-media-mostly-mum All, or the ones who deserve it? Link to comment Share on other sites More sharing options...
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